L&F, a global secondary battery comprehensive materials specialist, announced on the 4th that it has completed the process of establishing a subsidiary, L&F Plus Co., Ltd., responsible for the production and sales of lithium iron phosphate (LFP) cathode materials, and has begun construction in the second phase of the Naeri National Industrial Complex in Guji-myeon, Dalseong-gun, Daegu Metropolitan City since last August.
LNF Plus plans to invest a total of KRW 338.2 billion on a site measuring approximately 100,000 square meters to build a LFP cathode material production facility with an annual capacity of up to 60,000 tons. The company aims to complete construction in the first half of 2026 and begin mass production in the second half. The company is also considering additional expansions to meet growing market demand.
LNF plans to establish LNF Plus as a wholly owned subsidiary and accelerate its entry into the low- to mid-priced electric vehicle (EV) and energy storage system (ESS) markets based on its LFP cathode material business. LNF plans to pursue a flexible supply strategy, including shortening production schedules and expanding volumes based on customer requests.
Recently, demand for LFP cathode materials, which boast cost competitiveness and safety, has been rapidly increasing in the global electric vehicle market. However, Chinese companies dominate this sector. Consequently, securing a supply chain outside of China is emerging as a key industry challenge in the ESS and low- to mid-priced EV markets.
An L&F official said, “Based on differentiated technology and quality stability, we have secured the competitiveness to proactively respond to the demand for LFP cathode materials,” and “We will foster the LFP business as a profitable growth engine through early mass production and stabilization.”
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